Red Two Wheeler parked in the Streets

Beginner’s Guide to Buying a Two-Wheeler

February 7, 2020 Saving Money / Financial Tips,

India is one of the largest two-wheeler markets in the world and for an increasing number of Indians, two-wheelers have become a necessity rather than a luxury. However, buying a two-wheeler is not an easy task for everyone. From finalizing the right budget to choosing the ideal make and model, the process can be complicated and time-consuming.

Here is a quick beginner’s guide that will help you through the evaluation and buying process.

First, below are 4 critical considerations to keep in mind while evaluating your options –

Finalize your Budget: It is one of the most crucial aspects to consider while purchasing a bike. Determine your budget and make sure you include additional costs as well. If a two-wheeler’s ex-showroom price is Rs. 60,000, the overall cost could climb up to Rs.75,000.

Consider your usage: Why are you buying and what is your daily ride going to be? Is there anyone else in the family who will share your bike? How long do you intend to own it? These are a few of the questions you need to answer before shortlisting options. Used two-wheelers can be an ideal option if you are tight on budget and the need is mostly short term. If your primary requirement is to get a daily budget commute, fuel efficiency and not power should influence your options. Whatever you decide, it is critical to lay down the objectives before you start shortlisting options.

Motorcycles or Scooters: Most of your options will fall under these two categories. Scooters are relatively better in terms of fuel efficiency and easy to ride as most of them are automatic. Motorcycles, on the other hand, are relatively more powerful and require more riding skills as compared to automatic scooters. Based on your preference and comfort, zero in on the category and shortlist a few options based on performance, mileage, prices, designs, storage options, etc. Be sure to also check online reviews and take recommendations from family, friends, and colleagues.

Fuel efficiency: When evaluating a bike, many of us emphasize on mileage and rightfully so. If you expect to travel 1000 km per month, the estimated monthly cost of petrol according to the present rate would be Rs. 2,000 for a bike with a fuel efficiency of 40 km/liter. On the other hand, a similarly priced bike with 50 km/l mileage will result in fuel expenses of Rs. 1,600 per month, a saving of Rs. 400 or 20% on fuel expenses. Now, it all boils down to your preference – whether you want superior performance or cost-efficiency.

Once you have shortlisted your options, it’s important to plan the buying process efficiently to ensure you get the best deal on your purchase –

Test ride: Never buy a two-wheeler without getting a test ride in. Go to your nearby showroom and request a ride. Although two bikes might look the same on paper, they can exhibit considerable differences while driving. Make sure you run thorough tests at your end to conclude whether the vehicle suits your needs or not.

Pricing: On-road price of a new vehicle is usually 15-20% more than the ex-showroom price you may see in advertisements. These extra costs are usually towards Registration charges, Road tax, Insurance, and can impact your budget if not considered. Once you get the final quote, make sure to go through each item carefully. Compare prices and negotiate with your dealer. If the dealer sees you as a genuine buyer, there is a good chance you may get a slight discount.

Service and Maintenance: Getting a fair idea about servicing schedule and costs will avoid future surprises. Always check if initial service visits are going to be paid or complimentary. If the dealer promises you few free services as part of the price package, make sure you get the details in writing. Getting complimentary services and/or free accessories are good negotiation tools that all buyers should explore.

Insurance: Insurance is one of those cost items that is not only legally essential but also acts as a shield of protection for you and your vehicle against accident or theft. Ensure you have adequate coverage and all key terms are clearly understood. While insurance is compulsory, it isn’t mandatory that you take it from the dealer as part of the on-road price. Consider online quotes from other insurers and choose the one with the least premium for the same coverage terms.

Financing options: If you are looking for financing, always check if your existing bank has a pre-approved offer for you. If they are unable to offer you a loan, evaluate other options carefully and look for a Lender that offers a competitive rate of interest and provides a hassle-free application process. Loans come at a cost and hence it’s important to take only what you need.


As a young professional, owning a bike can be a matter of self-esteem and also convenience and necessity. Make sure you smartly evaluate options based on the above before you buy your dream bike.

If you are falling a little short on budget, you can consider a Mini Loan from OYE Loans. Mini Loans are excellent short-term financing options that give you the option of borrowing a small amount without the need to provide any collateral. Mini Loans come with affordable interest rates and can be paid off in easy installments without becoming a burden on your monthly cashflows.

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